Research On The Dynamic Adjustment Of Capital Structure Of Listed Companies In China Under The Background Of Epidemic

Compared with the SARS epidemic period in 2003,the situation in the COVID-19 period in 2020 is more severe.This round of epidemic has attracted great attention from the society,both in terms of the spread of the virus and its impact on the economy.At the initial stage of the epidemic,residents were isolated at home,enterprises were shut down,and even some cities pressed the pause button,resulting in a drop in demand between the supply and demand sides and a near shutdown of the economy.The change of the macro environment will cause the dynamic change of the capital structure.The dynamic adjustment of the capital structure of an enterprise is a strategic choice to continuously adjust the actual capital structure to the target capital structure,that is,the optimal capital structure,under the influence of internal and external factors.The research on the dynamic adjustment of capital structure in this paper will help Chinese listed companies to establish the awareness of optimizing the dynamic adjustment of capital structure under the impact of the epidemic,and establish the optimization mechanism of the dynamic adjustment of capital structure.The research content of dynamic adjustment of capital structure mainly includes two aspects: adjustment speed and deviation degree.The adjustment speed reflects the speed of the adjustment process,and the deviation degree reflects the quality of the adjustment effect.At present,scholars at home and abroad mainly use empirical research to study the dynamic adjustment of capital structure.This paper selects the listed architectural decoration companies in the construction industry as the case study object to explore the characteristics,influencing factors and economic consequences of the dynamic adjustment of capital structure under the background of the epidemic.Firstly,this paper calculates the dynamic adjustment speed of capital structure by Using Stata software,and compares the dynamic adjustment speed of capital structure of R company vertically and horizontally.It is found that the adjustment speed of R company during the epidemic period is lower than the average speed before the epidemic;At the same time,the adjustment speed of the company during the epidemic period was lower than that of the construction industry.Secondly,this paper analyzes the influencing factors of the dynamic adjustment speed of capital structure of R company under the background of the epidemic situation,and finds that the increase of economic policy uncertainty and financing constraints,the decline of product market competition and profitability ultimately lead to the slowdown of the dynamic adjustment speed of capital structure.Finally,the paper finds that the dynamic adjustment of capital structure of R company during the epidemic period will lead to the decline of company value and performance and the increase of financial risk.In a word,based on the new perspective of COVID-19,this paper finds out the characteristics of the dynamic adjustment of capital structure of R company,analyzes the influencing factors of the dynamic adjustment of capital structure of R company,and summarizes the economic consequences.This study can not only broaden the research field of dynamic adjustment of capital structure,but also provide reference for listed companies to optimize the dynamic adjustment of capital structure under the background of the epidemic.